Signs It May Be Time to Consider a Life Settlement
Life insurance is going to protect your loved ones’ finances in the event of your death, but there may come a point when it is no longer practical to maintain a policy. A life settlement gives you the ability to sell your policy to a third party so that you no longer have to make payments. Instead of letting your life insurance coverage lapse, it could be time to consider signing a life settlement contract.
Your Children Have Grown Up
For many older adults, the goal of a life insurance policy is to provide for younger children until they become legal adults. Once your children have grown up, you might want to purchase a smaller policy or get rid of your policy altogether. After signing your life settlement contract, you will have an immediate influx of cash that can be used to invest in a more practical policy that covers relatively small end-of-life expenses.
The Premiums Are No Longer Manageable
Making the transition from salaried employee to retiree can be incredibly difficult. Some seniors find themselves struggling with finances once their income has been slashed. Getting rid of monthly or quarterly life insurance premiums could bring your finances back into order. If you didn’t sign up for a policy that has a guaranteed fixed premium, then your premiums could even go up as you grow older.
Your Home and Cars Are Paid Off
Another reason why many people purchase life insurance is that they have large amounts of debt that they don’t want to pass on to a spouse, child, or grandchild. Your life insurance can be sold for a lump sum once you have paid off your cars, home, and credit cards. You also have the option of using the cash to finish those last few payments. Depending on what type of debt you have and how high the interest rates are, you could end up saving thousands by paying off those accounts early.
A life settlement can provide you with an immediate lump sum of cash and reduce your monthly expenses in the coming years.